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Inflation eases on slowed demand
Lower market demand coupled with increased production of essential commodities has caused a drop in prices on food and foodstuff.
The price reduction contributed to a lower consumer price index (CPI) in August, which hit only 0.68 per cent, according to a report in Tuoi Tre (The youth) newspaper.
The city statistics office said the CPI in August continuously increased, less than 0.39 per cent month-on-month.
The most weighted factor in the CPI, food and foodstuff, rose by only 0.17 per cent, the lowest increase within a year.
Pork prices, which had risen greatly, have fallen by 1.52 per cent.
Van Duc Muoi, general director of Vissan Limited Co, said the pork supply had gradually stabilised since early July, following a fluctuation caused by high interest rates on bank loans and disease that affected pigs.
Huong, a butcher in District 1's Tan Dinh market, said pork prices had dropped twice since the beginning of August.
The latest drop was on August 10, with the average price down VND3,000-VND4,000 per kilogramme.
Huong said pork demand always fell significantly in every seventh month of the lunar calendar, which is the month for vegetarians.
Thuong, a butcher at Go Vap District's Go Vap market, estimated the demand had downed by 30 per cent. The shop sold 30kg per day, down 15-20kg month-on-month.
Tran Dinh Khai, a representative of San Ha Company Limited specialising in providing poultry, meat and egg products, said the price of poultry fell by 1.35 per cent month-on-month.
Supply had even exceeded demand, he added.
In order to sell all of the poultry meat, the company has asked retailers to cut the price by VND7,000 per kg.
"We have supplied Co.op Mart chain with six tonnes of chicken for the chain to sell it at VND45,000 per kg, much lower than the price under the city's price stabilisation programme," Khai said.
This month has seen a slight increase in the price of fresh aquatic products, vegetables, eggs and beef.
However, if product circulation between wholesale and retail markets improves and the differential tariff is narrowed, the price of vegetables will fall, according to Nguyen Thanh Ha, deputy director of Tam Binh Wholesale Market in Thu Duc District.
Stable sources
Vissan had worked with pig farms by giving them money in advance so they could supply the ordered amount of pigs at a stable price, Muoi said.
The company planned to store 4,000 tonnes of pork per month, up 1,000 tonnes compared with the assigned norm.
San Ha Company has also presented its storage plan for Tet (Lunar New Year) to the city People's Committee.
It expects to supply 180 tonnes of poultry meat per day during the month of Tet.
"We had agreements with major farms to have a stable source. The poultry price is expected to be stable for the rest of this year," Khai said.
In order to have a stable source of vegetables for the city, the Department of Industry and Trade has encouraged companies to work with co-operatives and companies in neighbouring provinces to develop vegetable plants that could be harvested in a short time and have a high yield.
The prices of ordinary rice and sticky rice have shown an upward tendency because of the information about the increasing price of export rice and Thailand's rice price adjustment.
The department has asked companies to co-operate with the Food Company of HCM City to balance rice supply and demand, and develop a storage plan to cope with market fluctuations.
Le Van Khoa, deputy of the department, said demand would rise when the National Day holiday period begins next month.
"Promotions based on discounted offers of companies will help keep prices stable," he said.
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